Hero MotoCorp eyes market-beating growth on strong demand, new launches

Hero MotoCorp shares have slipped nearly 14 percent in the last three months.

Hero MotoCorp, the world's largest two-wheeler company, is optimistic about the two-wheeler industry’s growth prospects, expecting to outpace the broader market as demand remains steady across rural and urban regions. The company is banking on an expanded 125cc portfolio, new product launches, and continued investment in brand-building to drive growth.

"We are positive about the growth prospects of the two-wheeler industry, and with the continuity of demand and recovery in the broader two-wheeler markets, for us both rural and urban, ramp up of 125cc portfolio, new product launches, and strong investment behind building power brands, we expect to grow ahead of the industry," Hero MotoCorp Management said in the conference call on February 7, a day after declaring it Q3 earnings.

A key focus is strengthening its core business—consolidating its position in the 100cc and 125cc motorcycle segments, where it has traditionally been strong. Additionally, new scooter launches are expected to add to its market presence.

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Hero MotoCorp strengthened its market share in the 100cc segment with Splendor and in the 125cc category with Xtreme 125R and Super Splendor. The company also achieved its highest-ever quarterly retail sales, driven by record festive-season demand.

At the same time, Hero is pushing deeper into the premium segment. The company has introduced new models under its "power brand" strategy while also expanding its premium sales and service network. The Hero 2.0 initiative aims to enhance the overall customer experience with a more refined approach to both sales and after-sales service.

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During the quarter, reported a 12 percent rise in net profit at Rs 1,203 crore for the quarter ending December 31, 2024, thus beating estimates. It reported a net profit of Rs 1,073 crore in the year-ago period.

A strong performance in both the EV and global businesses further fueled growth. VIDA posted its highest-ever monthly retail, gaining market share during the quarter. In the global market, Hero MotoCorp outpaced industry growth, with Bangladesh and Colombia leading the expansion. The company sold 14.64 lakh motorcycles and scooters in Q3 FY25, slightly up from 14.60 lakh units in Q3 FY24.

Hero MotoCorp shares were trading at Rs 4,286, higher by 1.2 percent from the last close on the NSE. Hero MotoCorp shares have slipped nearly 14 percent in the last three months.

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